Requires certain nursing homes to improve quality ratings.

This bill requires nursing homes in New Jersey that participate in Medicaid and have the lowest federal quality rating (one star on the CMS Five-Star System) to create and implement a six-month corrective action plan aimed at improving their rating to at least two stars. The plan must detail specific steps to address quality issues identified in CMS health inspections, staffing, and resident care data. Nursing homes must submit the plan to the Department of Human Services for approval, then report progress every 60 days. Failure to comply results in loss of Medicaid reimbursement until residents are relocated, with the facility required to provide written notice and discharge plans to Medicaid residents.